Tax Benefits

Credits

• Hope Credit - The Hope Credit is for the taxpayer that uses the eligible student’s exemption and is for expenses related to the first two years of post-secondary education. The Hope Credit allowed may be limited by the amount of your income and the amount of your tax. Note: a taxpayer cannot take both an education credit and a deduction for tuition and fees for the same student in the same year. More information
  
  
• Lifetime Learning Credit - The Lifetime Learning Credit of up to $2000 can be claimed for qualified education expenses paid for all eligible students.  There is no limit on the number of years the lifetime learning credit can be claimed for each student. Note: a taxpayer cannot claim both the Hope and Lifetime Learning Credits for the same student in one year.  More information

Deductions

• Tuition and Fees Deduction - You may be able to deduct qualified higher education expenses paid during the year for yourself, your spouse or your dependent. This deduction can reduce the amount of income subject to tax by up to $4,000, and can be claimed even if you do not itemize deductions.  Note: certain restrictions apply. More information
  
  
• Student Loan Interest Deduction - If your modified adjusted gross income is less than $70,000, or $145,000 if filing jointly, you are allowed to deduct interest paid on a student loan used for higher education. This deduction can reduce the amount of your income subject to tax by up to $2,500. You can claim this deduction even if you do not itemize deductions. More information